Stored-value cards currently are either pre-loaded and activated by an issuer or an issuer's agent, or loaded at the time of issuance/purchase by an issuer or an issuer's agent. Typically, these cards can be redeemed for merchandise at a specific merchant, utilized on a credit card network, or loaded to a proprietary network.
The purchaser of the card has no control over the card once it leaves their possession. For this reason, control of fraud, and potential escheatment are difficult to manage. It also is difficult to know if the recipient of the card has used the card.
These and other drawbacks exist.